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Vodafone Idea ready take first step in raising prices, says MD & CEO Ravinder Takkar

Increased tariffs will help the telco improve its average revenue per user, which is presently at Rs 114, compared to Airtel’s Rs 157 and Jio’s Rs 140

September 07, 2020 / 07:23 PM IST

Vodafone Idea's Managing Director and Chief Executive Officer Ravinder Takkar has said that tariffs should go up and the telco is ready to take the first step.

Speaking to the media on September 7, Takkar said "everyone is selling below cost and the telco is not shy to take the first step". He also added that the telecom regulator would also have to reconsider tariff charts, The Economic Times reported.

Increased tariff rates will help the telco improve its average revenue per user (ARPU) which is presently at Rs 114, compared to Airtel’s Rs 157 and Jio’s Rs 140, he added.

The telecom company on September 7 announced it is re-branding as Vi (read as We) in a move aimed at attracting digital customers. Vodafone Plc's Indian arm had merged with Idea Cellular in August 2018, but the telcos had since maintained two separate brands.

Also read: Vodafone Idea shares surge 10% ahead of strategic announcement

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"The integration of two brands is a culmination of the largest telecom integration in the world," Takkar said as he announced the rebranded entity. "It's time for a fresh start," he said.

The board of Vodafone Idea had approved fundraising up to Rs 25,000 crore on September 4.

Through the unified brand and a bigger bet on digital, Vodafone Idea hopes to attract fresh subscribers. The company's customer base dropped sharply to around 280 million at the end of June from 408 million at the time of its merger with Idea.

Vodafone Idea and Bharti Airtel had lost around 47 lakh wireless subscribers each in May 2020, according to the Telecom Authority of India data released in August.
Moneycontrol News
first published: Sep 7, 2020 03:16 pm
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